Web3 has a lot of money for this – well, yes, a little less than a few months ago – but it’s still hard to argue that the mainstream consumers are lining up to take advantage of Web3’s Internet services. There have been some unexpected successes so far, but investors are still looking for consumer use cases that make the most of blockchains, tokens, and NFTs beyond just trading them.
Andreessen Horowitz (a16z) GP Shriram Krishnan believes web3’s stimulating structures make the space a natural fit for social media, he told us on the latest episode of TechCrunch’s crypto podcast. Chain reaction. Krishnan has extensive experience in Web 2.0 social media; he served as an executive at Twitter, Facebook and Snap before joining a16z, which notably just debuted its latest $4.5 billion crypto fund.
“People ask me, ‘What do you spend a lot of time on that really interests you?'” Krishnan says. “I think the intersection of social media and web3 is really exciting.”
While web3 has not yet seen a platform equivalent to Twitter or Facebook, Krishnan believes that the blockchain-based platform structure provides some interesting incentives to attract creators to their networks, who in turn can attract their audience. He notes that some of the most popular social media services in existence have indexed sales of providing content creators with a platform with broad reach, but one that doesn’t necessarily give them the financial potential of the network itself — which he believes NFTs and tokens could do. to correct
“With web3… the people who contribute to the platform now have a share of the economy happening on the platform itself,” says Krishnan. “On some web3 social networks, you can actually have the spiritual equivalent of a spot on the betting table.”
In addition to tokens and other crypto assets, Kirshnan referred to mechanisms such as decentralized autonomous organizations (DAOs), which allow stakeholders in a platform or protocol to make decisions about how this project develops, which, in his opinion, is rather alien to existing ideas about how how big technology companies interact. with their most popular content creators.
“[With web3], now you have a voice in the management of said platform, which is really very interesting. This opens up a whole new set of tools and new power dynamics between creators and social media platforms,” says Krishnan.
Krishnan says the open nature of the protocols running on web3 means that clients will be more indebted to the interests of their users because it will be easier for users to migrate their assets and content to a new platform if they feel their interests are not being represented. something like rethinking the idea of exporting data from social networks.
“That “right to exit,” that right to create alternative clients, is one of the social things about web3 that I find really exciting,” he notes.
At this point, the Web3 social network is pretty theoretical, and while a few startups have tried to make a splash, the onboarding challenges for users getting wallets, buying tokens, and joining the platform are still much more difficult than experiences on more streamlined sites like Twitter. Investors are hoping that some of these problems are just growth problems that developers will overcome, developers that venture capitalists like Krishnan hope will be able to fund them.
Credit: techcrunch.com /